I am trying to replicate Cavallari 2013 - A note on firm entry, markups and the business cycle but my RANK isn’t verified…I am not getting where is my mistake.
Can anyone please help?
rep2.mod (2.9 KB)
Kind regards,
Awanish
Usually it is either timing error or a problem with the parameterization. Could it be that your model does not satisfy the Taylor principle?